Aleksei Andriunin, founder and CEO of the crypto consulting firm Gotbit, pleaded guilty to market manipulation and wire fraud in a New York federal court on March 21, 2025. Prosecutors accused Andriunin of orchestrating a sophisticated scheme that manipulated the prices and trading volumes of digital assets on major crypto exchanges. His actions misled investors and artificially inflated market activity, violating federal law.
The Department of Justice revealed that Andriunin and his firm used “wash trading” techniques to simulate trading activity for over 40 cryptocurrency tokens. Wash trading involves buying and selling the same asset repeatedly to create a false appearance of market demand. Gotbit charged crypto projects for these services, helping them qualify for listings on prominent exchanges and attracting unsuspecting investors.
Prosecutors explained that Andriunin built customized trading bots that executed thousands of fake trades daily. He ran the bots across multiple centralized and decentralized platforms. This coordinated effort created a false narrative of liquidity and legitimacy, increasing token prices and luring in real market participants. Andriunin then charged clients between $10,000 and $50,000 per month for this illegal activity.
Assistant U.S. Attorney Richard Goldstein, who led the prosecution, said, “This case underscores the government’s commitment to ensuring transparency and fairness in digital markets. Andriunin’s deception distorted token prices and undermined trust in the broader crypto ecosystem.”
Court documents showed that Gotbit started as a crypto market consulting firm based in Russia. It claimed to offer “market making” services that helped projects maintain token price stability and attract investor interest. But behind the scenes, Andriunin and his team engaged in systematic price manipulation. They designed algorithms to create artificial volatility, mimicking the natural ebbs and flows of organic trading.
The manipulated tokens spanned a wide range of use cases—from gaming tokens to DeFi platforms and layer-2 scaling projects. Prosecutors stated that in at least 20 cases, the price of a token surged by over 400% during Gotbit’s wash trading campaigns. After the artificial demand dried up, prices collapsed, leaving retail investors with heavy losses.
The Securities and Exchange Commission (SEC) also launched a parallel investigation. It charged Gotbit and Andriunin with violating anti-fraud provisions of U.S. securities laws. SEC Chair Gary Gensler released a statement applauding the criminal conviction and warned other bad actors: “If you manipulate markets to mislead investors, we will find you, and we will prosecute.”
Andriunin, 29, voluntarily traveled to the United States last year under the impression that he could legitimize his business and expand into new markets. However, investigators had already gathered damning evidence through blockchain forensics and undercover operations. Authorities uncovered Telegram chat logs, emails, and internal documents that detailed Gotbit’s manipulation strategies.
The FBI’s Cyber Division tracked on-chain activity linked to Gotbit’s wallets and discovered irregular trade patterns that matched the firm’s marketing pitches. Investigators interviewed former clients and employees, many of whom described an internal culture that normalized deception and viewed regulation as an obstacle to be gamed rather than followed.
Legal analysts believe this case sets a major precedent in crypto law enforcement. By treating wash trading as wire fraud and market manipulation, prosecutors have opened the door for broader application of traditional finance laws to digital assets. The court scheduled Andriunin’s sentencing for June 2025. He faces up to 20 years in prison for wire fraud and 10 years for securities fraud, along with possible restitution payments to affected investors.
Some crypto advocates see the case as a necessary step toward cleaning up the industry. Kristin Johnson, a law professor specializing in financial regulation, said, “The crypto sector must evolve beyond hype and manipulation. Cases like this highlight the need for stronger compliance, real-time auditing, and accountability.”
Others worry about the chilling effect this might have on legitimate market makers and liquidity providers. “We need clear guidance distinguishing lawful liquidity support from illegal manipulation,” said Max Bergmann, CEO of a U.S.-based crypto trading firm. “Otherwise, innovation could suffer.”
The case also shines a light on the global nature of crypto enforcement. Though Gotbit operated primarily out of Russia and Eastern Europe, its actions affected U.S. markets and investors. Regulators across jurisdictions coordinated efforts, signaling a more unified global stance on crypto crime.
In response to the conviction, several exchanges delisted tokens linked to Gotbit’s manipulation campaigns. They also launched internal reviews of their listing procedures and market surveillance practices. Binance, Coinbase, and Kraken all released statements affirming their commitment to fair and transparent markets.
Andriunin’s guilty plea sends a clear message to the crypto world: regulators and law enforcement now possess the tools, expertise, and determination to prosecute digital financial crimes. The case marks a turning point in how authorities police the rapidly evolving crypto space.
As the crypto industry matures, transparency, integrity, and investor protection will become even more critical. Andriunin’s case reminds entrepreneurs and investors alike that short-term profit schemes can lead to long-term consequences. If the industry hopes to earn mainstream legitimacy, it must prioritize ethics over hype, and compliance over corners cut.
